Image default

A Beginner’s Quick Guide To Health Insurance Top-Up Plans

In life, it is always good to have a plan B ready in place if things do not happen as they should. This plan B is actually your backup that offers you peace of mind. For instance, when appearing for an important examination, you would not simply carry along a single pen. You would have a second pen too just in case the first one stopped midway.

We have to apply the same logic of having a backup in place when it comes to health insurance. In health insurance, your backup plan is simply referred to as a top-up plan on your medical insurance policy. Just like your spare pen comes in handy when the first one gives up midway, your top-up plan kicks into action when the coverage of your health insurance policy runs out.

Now, if you are new to health insurance, you might not have heard of top-up plans at all. Or, you might have heard about these plans in passing but have no proper clue about the benefits they offer. Don’t worry for this article will take you through a few basics of top-up plans and their benefits.

What are top-up plans?

A top-up plan is extra coverage that you can add to your base health insurance policy. This extra coverage kicks in or becomes operational when you exhaust the limit of cover you have on your base insurance policy.

Top-up plans have their threshold limits that must be set by you based on your existing coverage. If a single incidence of hospitalisation leads to you exceeding this threshold, your top-up plan kicks into action and covers you. It is important to keep in mind that a top-up plan can only be used for a single incidence of hospitalisation in which you exceed the coverage of your base health insurance plan. You cannot add up or combine the total cost of multiple hospitalisations to get your top-up plan’s coverage.

Do note that top-up plans should not be confused with riders or add-ons in health insurance. Add-ons are supplementary covers that usually cater to a single aspect of medical care, for instance, an add-on might specifically cover you for critical illnesses or AYUSH treatment and cannot be used for any other purpose. A top-up plan, on the other hand, functions to cover all expenses that exceed the threshold within the scope of the health insurance policy. Top-up plans do not cater only to certain illnesses or aspects of hospitalisation.

What is the benefit of having a top-up plan?

Quite often, we might find ourselves feeling that our existing health insurance coverage is insufficient. Now, buying a second health insurance plan can prove to be more costly. Taking a top-up plan makes more sense as its premium cost is generally cheaper than paying for a new health insurance plan. Thus, you get added protection at a lesser cost. Moreover, the premium that you pay for your top-up plan can be used to claim tax deductions too.

Some quick advice on choosing top-up plans

Choosing a top-up plan can be confusing if you are new to health insurance. If that is the case, do not hesitate to ask an insurance specialist for a detailed explanation of the inclusions and clauses that are applicable on their top-up plans. Afterall, it is important that you know what you are paying for. Moreover, never get tempted by cheap premium rates on certain top-up plans as these low-cost top-up plans might often come with very high deductibles. Do thorough research and make sure that you get your money’s worth.

We hope this article has improved your knowledge on top-up plans in health insurance. Do speak to your insurance provider or agent about getting adequate coverage immediately.

Good luck!

Related posts

What Should You Know About OPD Cover In Your Health Insurance Policy?

Emily Tracy

What are the different types of covers for two wheeler insurance policy?

Emily Tracy


Emily Tracy